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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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If a debtor has a personal loan that was used to pay tuition,

Resolved Question:

If a debtor has a personal loan that was used to pay tuition, the school referred to it as an "alternative loan" Can this loan be discharged in chapter 7 BK or would it be considered a student loan? The loan was acquired in 2005 and no payments were ever made. Currently collection activity has commenced.
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 4 years ago.
Hi JACustomer,
Where did the personal loan come from? (Who was the lender?)
Customer: replied 4 years ago.
The lender was key bank
Expert:  cfortunato replied 4 years ago.

If the loan was not an "educational loan", it is dischargable in a Bankruptcy. Bankruptcy Stat. 523(8)(B). It does not matter that the funds received were used to pay for education.


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Thank you.



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